Statute of Limitations
Learn about the IRS 10-year collection statute and when the agency's authority to collect your tax debt expires.
The 10-Year Collection Statute
The IRS has 10 years from the date of assessment to collect a tax debt. After the Collection Statute Expiration Date (CSED), the IRS can no longer legally collect the debt, and it is permanently discharged.
Key Point
The 10-year clock starts from the assessment date, not when you filed your return or incurred the tax.
What is the Assessment Date?
The assessment date is when the IRS officially records your tax debt in their system. This typically occurs:
- When you file your tax return showing a balance due
- When the IRS completes an audit and issues additional tax
- When you file an amended return showing additional tax
- When the IRS files a substitute return on your behalf
How to Find Your Assessment Date
Request an IRS Account Transcript (Form 4506-T) or call the IRS at 1-800-829-1040. The transcript shows the exact assessment date for each tax year.
Events That Pause the Clock
Certain events "toll" (pause) the 10-year statute, extending the time the IRS has to collect. The clock pauses during:
Offer in Compromise
Clock pauses while OIC is pending, plus 30 days after rejection if you appeal.
CDP Hearing Request
Clock pauses during the hearing process and any subsequent appeals.
Bankruptcy
Clock pauses during bankruptcy proceedings, plus an additional 6 months after discharge.
Installment Agreement
Clock may be extended if payment plan exceeds the remaining statute period.
Living Outside the U.S.
Clock pauses for periods of continuous absence from the United States exceeding 6 months.
Innocent Spouse Relief Request
Clock pauses while innocent spouse claim is pending.
Statute Strategy Considerations
Some taxpayers with limited income and assets may consider waiting out the statute of limitations rather than entering a payment agreement. Consider:
When Waiting Makes Sense
- Debt is close to expiring (1-3 years left)
- You qualify for Currently Not Collectible status
- No significant assets to protect
- Limited or fixed income
When Waiting is Risky
- Significant time remains (5+ years)
- IRS is actively pursuing collection
- You have assets the IRS could seize
- Penalties and interest continue accruing
Penalties and Interest Continue
While waiting for the statute to expire, penalties and interest continue to accrue. This can significantly increase your tax debt. The IRS charges:
- Failure to Pay Penalty: 0.5% per month (up to 25%)
- Interest: Currently around 8% annually (variable rate)
Combining CNC with Statute Strategy
If the statute is set to expire soon but you need immediate relief from collection actions, request Currently Not Collectible (CNC) status. This:
- Stops IRS collection actions
- Allows the statute clock to keep running
- Doesn't extend the collection period
- Requires periodic financial reviews
Important Warning
The IRS knows about statute expiration dates and may aggressively pursue collection as the deadline approaches. Don't assume they'll forget about your debt - have a strategy ready.
Check Your Statute Expiration
Request your IRS Account Transcript to find your assessment date and calculate when the statute expires.
Request IRS Transcript